Jamie Dimon: Economy Could Boom if Fiscal Cliff Averted

The U.S. economy could boom if lawmakers can work together to steer the country away from a fast-approaching fiscal cliff, said JPMorgan CEO Jamie Dimon.

At the end of this year, the Bush-era tax cuts and other benefits are set to expire at the same time automatic cuts to government spending are scheduled to kick in, a combination known as a fiscal cliff that could send the country sliding into a recession next year if left unchecked by Congress.

Should lawmakers strike a deal and avoid seeing tax hikes and hefty spending cuts take effect at the same time, the economy could boom considering that fundamentals are showing signs of improvement.

"The foundation of business is actually pretty strong," Dimon told CNBC.

Big companies are healthy and flush with cash.

Small and medium-sized business are looking better as well, and housing, the sector that largely threw the economy into the worst downturn since the Great Depression and continues to weigh on recovery, is also showing signs of life.

"To me the most important thing is we solve the short-run fiscal cliff and the longer run fiscal issues. I personally think if we do that, the economy can boom."

The White House, meanwhile, has said it will veto any legislation extending tax cuts for families making $250,000 or more.

"I am not going to ask students and seniors and middle-class families to pay down the entire deficit while people like me, making over $250,000, aren't asked to pay a dime more in taxes," President Obama said just after his reelection, as quoted by the Associated Press.

"I'm not going to do that," President Barack Obama added.

Republicans have said wealthy Americans create jobs, and hiking taxes on them would hamper recovery.

"The problem with raising tax rates on the wealthiest Americans is that more than half of them are small business owners," House Speaker John Boehner said after Obama's reelection, the Associated Press adds.

"We know from Ernst & Young, 700,000 jobs would be destroyed. We also know that it would slow down our economy."